Extended warranty
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Different dealers offer warranties at different rates - or at least they used to. Some would cut their share of the sale to the bone in order to lower the cost, either relying on selling volume to make up money or just wrote it off as a promotional cost to bring in new prospective customers.
It's not sold as one sum anymore. Nor is it sold as one item. Or maybe I went to the wrong dealer.
Example
My gap for my car was $500.
Gap for my truck is $10 per month added to my payment.
They weren't selling an extended warranty. They were selling different service programs. 5 different programs. Ranging from $40 to $125 per month. Extra. My car was $2200. One lump sum for one item.
Don’t know if GM does this but when I had 17 and then 18 Shelby GT 350 new I took out the best extended warranty Ford had. You can buy Ford extended warranty from places that sell Ford warranty way cheaper than directly from Ford dealership. My dealership was amazed when I told them I bought online the same one they sold hundreds of dollars cheaper. The parts guy looked it up and said I was right he showed I had the exact same Ford warranty that Ford sells through dealership. He was surprised. And said he showed through Ford I had the best warranty they sell.
Know where we can find for our trucks?
I'm not sure but I don't think GM lets other company's sell there extended warranties as Ford does.
Was the same when I bought my 2019 Colorado new. Mt dealership uses Allstate. I researched it there best one with a $100.00 deductible had most everything so I had dealership add payment to my loan which for my 6 year loan wasn't much higher payment. I drive little (I have now 8,900 on truck) so I knew I'd run out of factory warranty with years before miles. And needed extra assurance if any problems till loan paid off.
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3,491 Posts
These Ins co's have a lot of loop holes. After careful research I decided I would be ahead putting the monthly Ins payment in a separate savings account. Little over $2k already.
probably the best advice im going to get lol
I bought mine at knappvehicleservicecontracts.com. Substaintially cheaper than anywhere else.
Well thats nice but not all of us have that option. I'm retired on fixed income and budget my money accordingly to live comfortable within my means. I was able to afford my new Colorado payment for six years and by adding my extended warranty my payment went up very little. And that for me is peace of mind if something goes wrong with truck before its paid for.
Is it a GM warranty or a 3rd party warranty? Could make a difference.
I never bought an extended auto warranty. Ask yourself; what is likely to break down (expensive) for as long as you own the vehicle? Probably the most expensive hits would be engine replacement or transmission replacement/overhaul. How often? Well, if you do regular maintenance; probably not likely those areas will fail.
I never bought an extended auto warranty. Ask yourself; what is likely to break down (expensive) for as long as you own the vehicle? Probably the most expensive hits would be engine replacement or transmission replacement/overhaul. How often? Well, if you do regular maintenance; probably not likely those areas will fail.
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6,777 Posts
A rainy day fund is something you should have budgeted in 40 years ago. Just $25 a month stuck away over that time would have resulted in $12,000 today, not counting interest accrued over that period of time which would have made it substantially more. And if you did have to draw from it, you wouldn't incur credit card interest that can run over 20%. It's called financial planning and it not only pays off, it too gives you a sense of security that not is your truck covered for possible repairs, but so is everything else in your life.
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I'm on VA disability as a majority of my income. I know what you mean. If you take the $50 a month and spread it out beyond the normal warranty after it runs out, within 3 years you have your extended warranty in savings. If you pay anything more than that, it's a bad investment. It's all in the discipline to simply not touch that money. You are already spending it each month currently. How is it different to save it? I see the peace of mind argument all the time, and it's great, but if you save the money yourself you have peace of mind in a lot more options. It really is that simple. Any good loan on a vehicle will already have GAP included for very cheap, 99% of the time cheaper than whatever the dealer offers with their extended warranty. The rest can easily be done by anyone. Literally anyone. And if it can't - then you can't afford what you are investing in in the first place.
Well, everyone has to evaluate their financial situation. In some circumstances, an extended warranty might be appropriate ; i f anything to give the owner piece of mind. On the other hand, if you have set aside $$$ for a rainy day expensive; then an extended warranty is not appropriate.
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